What Happened?
Teachers and bus drivers in several Massachusetts cities have been receiving unemployment compensation during the summer when they are on hiatus from their full-time jobs.
The Details
The Department of Unemployment Assistance’s Task Force on Municipalities is mandated with investigating and reforming the municipal unemployment compensation system. There are eight members on the Task Force, including Salem Mayor Kim Driscoll, whose town expects to pay about $410,000 in unemployment compensation in FY 2012, up from $300,000 in 2011.
Acting on a letter signed by 24 municipal officials, the state set forth a plan to tackle a number of issues, such as:
- Retirees who file for unemployment after reaching hourly or wage limits
- Public safety employees who file for unemployment after reaching mandatory retirement age of 65
- Teachers who receive unemployment during the summer breaks
- School employees who receive unemployment during vacation breaks
- Unemployment claims made by part-time municipal workers
The Labor Secretary’s office reached out to all 351 communities for feedback concerning these matters. 64 municipalities replied detailing 237 cases for oversight.
The Recommendations
The Task Force has only met once to date but expectations are high that reform is coming. The short-term initiative is to make recommendations for improving the unemployment insurance system. Their next meeting is scheduled for June 21, 2012. This statement came directly from the Executive Office of Labor and Workforce Development:
“The Executive Office of Labor and Workforce Development (EOLWD) worked to fast-track the establishment of the Unemployment Insurance Municipal Task Force, which began meeting in April. Members are working diligently on issues both during and between meetings. The membership of the Task Force is as follows: Senator Dan Wolf, Representative David Torrisi, Mayor Setti Warren (Newton), Mayor Kim Driscoll (Salem), Michael Widmer (Massachusetts Taxpayers Association), Paul Toner (Massachusetts Teachers Association), Jen Springer (Massachusetts AFL-CIO), and Judge Raya Dreben (ret.).
All parties are moving quickly, but it is important that its review, report and recommendations be done in a deliberate, yet efficient manner. The Task Force’s members will determine the time-line as it moves forward on when its final report will be issued.
In addition to the Task Force, since issues were highlighted in early March by twenty towns, EOLWD has taken the following actions:
- Introduced legislation to restrict so-called “960 employees” from UI eligibility.
- Sought information on UI issues broadly and specific cases that raised concerns from all 351 cities and towns. Received information from approximately 100 cities and towns.
- EOLWD Secretary, Joanne F. Goldstein, held a meeting with interested municipalities. All 351 cities and towns were invited to attend. Approximately twenty towns participated.
- DUA established a dedicated phone line for municipalities with UI issues: 617-626-6262
- Issued guidance and clarification to cities and town on how existing law exempts municipalities from UI liability for on call fire fighters and seasonal employees and how to respond to claims on these issues.
- DUA committed to educational workshops for municipalities on how to manage UI costs and liability and will partner with the Massachusetts Municipal Association on how to conduct these workshops.
- System wide review at DUA, including additional training for adjudicators and review examiners, of how we can better service municipalities.”
The Upshot
Municipal officials have been clamoring for reform for years only to have requests fall on deaf ears. With the governor in his final term, reform initiatives are finally starting to see the light of day.
Action Items
The MA Senate and House agreed to extend the reporting date to June 21, 2012
To read house bill 3980, which put the task force into place.
The state’s task force Web site can be found here.